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Environmental Resources

Landmark Carbon Offsetting Transactions "“ THE First CER Cancellations

Published 02-14-08

Submitted by Precious Woods

February 14, 2008 - UK Registered Charity, PURE the Clean Planet Trust, is the first UK carbon offset provider to cancel Certified Emission Reduction credits (CERs) in respect of purchases via Precious Woods Group and South Pole Carbon Asset Management.

The proposed UK Government Code of Best Practice for carbon offsetting intends to 'set timescales for cancelling credits', but this has been frustrated because the United Nations International Transaction Log (ITL), necessary to transfer CERs to accounts in the national registry of any EU Country has not yet been switched on "“ so preventing the final delivery and ultimate destruction of the credits.

PURE, Precious Woods and South Pole have overcome this problem by arranging for delivery into PURE's account in the newly opened Swiss Government Registry. Switzerland is the first European country to connect to the ITL. Since it is not in the EU, it is not hampered by the networking issue.

PURE believes that it is the first UK carbon offset provider to complete the process favoured by the draft UK Government Code for any project.

These transactions were financed with donations to PURE from Man Group Plc, the Barclaycard Breathe credit card, which donates 50% of its profit to support carbon reduction projects in the UK and abroad, and donations to PURE from individuals and other corporate donors.

The Transactions

On February 12 & 13th 2008, PURE the Clean Planet Trust, Precious Woods and South Pole completed the transfer of a total of 24,000 Certified Emission Reductions (CERs) respectively from the Precious Woods BK Energia Itacoatiara and the Malavalli CDM projects to PURE's account in the Swiss emissions trading registry. The credits were subsequently cancelled.

The Projects

BK Energia Itacoatiara, Brazil

Renewable Energy and Forest Preservation

Itacoatiara is a power plant that uses waste wood from sustainably managed forests as a fuel, replacing electricity generated from polluting diesel generators.

Renewable energy is generated for an area in the Amazon with a population of around 80,000.

Waste wood is used from about 450,000 hectares of sustainably managed and Forest Stewardship Council (FSC) certified Amazon forest. Sustainable harvesting means that no more than 5 trees are harvested per hectare every 25 years and that low-impact logging techniques are applied in order to preserve the wildlife and to protect the forest canopy.

In addition, 25% of the forest is set aside for absolute preservation and access to the forest is controlled to prevent illegal deforestation and the hunting of endangered species.

The project's other main environmental benefit is to protect an area of forest of around 1,80 square miles "“ roughly three-times the size of Greater London.

Carbon emissions are reduced by around 165,000 tonnes per year. This is equivalent to the domestic energy emissions of a UK town of 60,000 people such as Scarborough.

Malavalli Power Plant, India

Crop waste power plant

World's first 'Gold Standard' project to have its CERs issued.

Generating clean, renewable electricity from crop waste such as coconut fronds and sugar cane trash. Reducing CO2 emissions by around 20,000 tonnes per year.

Directly creating at least 500 local jobs in the power plant and in the collection of the agricultural waste that the plant uses as a fuel.

Local farmers are now getting paid for crop waste that was previously left to rot or burned.

Directly contributing around US $1 million to the rural economy.

Waste from the power plant is environmentally beneficial as an organic fertilizer.

Supplies reliable electricity for around 10,000 people in 47 villages.

Reliable electricity further stimulates local economic activity.

About PURE:

1) PURE is the first UK registered charity dedicated to combat climate change by carbon offsetting.

2) The charity was launched on 29th November by Ian Pearson, UK Government Climate Change and Environment Minister, who said:

" The Government welcomes the launch of PURE's carbon offsetting scheme. The Scheme offers credits that have been generated from emissions reductions that are regulated, verified and for which there is a clear audit trail ."

3) PURE supports the proposed UK Government Code of Best Practice that will set standards for

Robust and verifiable emission reduction credits;

Accurate calculation of emissions to be offset, using statistics and factors published for this purpose by the Government;

Clear information for consumers regarding the mechanism and/or projects supported;

Transparent pricing;

Timescales for cancelling credits, and

Where offered by a company with other goods and services, those companies will offer a ‘compulsory choice’ for the consumer to offset.

Source : http://www.defra.gov.uk/environment/climatechange/uk/carbonoffset/faqs.htm

4) PURE's overall expense ratio (unaudited 2007 data) is below 13%.

5) Details of the projects currently being supported by PURE can be found at:

http://www.puretrust.org.uk/OurProjects.aspx
http://www.barclaysmicrosites.co.uk/barclaycardbreathe

6) Patron and Trustees include:

Stephen Fry "“ Broadcaster "“ Patron.
Sir David Brewer "“ former Lord Mayor of London
Jed Jones "“ Export Adviser to UK Business at the Climate Change Projects Office.

Donors can contribute to PURE via http://www.puretrust.org.uk

About Precious Woods:

Precious Woods (SWX: PRWN) is active in the reforestation and sustainable management of tropical forests, downstream wood processing and trading of FSC certified timber and non timber forest products. The shares of Precious Woods have been listed on the SWX Swiss Exchange. More information may be found on the website www.preciouswoods.com

About South Pole Carbon Asset Management:

South Pole is a carbon asset management boutique with outstanding technical expertise and a reputation for developing innovative and cost-effective emission reduction projects. The company focuses on high-quality greenhouse gases emission reduction certificates and was the first company worldwide that generated issued CERs with the Gold Standard quality label. It combines carbon market experts from McKinsey & Company Inc. with the founders of myclimate Foundation and 500ppm Ltd. South Pole staff has advised successfully registered CDM and VER (Voluntary Emission Reduction) projects with a forecasted total of more than 100 million tons of CO2 till 2012.

Precious Woods

Precious Woods is a world leader in the sustainable management and use of tropical forests. Based in Switzerland with some 1,800 employees, our company has subsidiaries in Brazil, Costa Rica, Nicaragua, Holland and Switzerland. Sustainable Management of Existing Forests: In Brazil we manage existing tropical forest according to the guidelines of the Forest Stewardship Council (FSC), in a sustainable and low-impact manner, thereby ensuring its long-term preservation. Reforestations: In Central America we reforest pastureland according to FSC with a mosaic of teak and various indigenous species. Timber Industry and Trading: Our FSC products find applications in the construction, industrial, furniture, and do-it-yourself sectors, with customers in Europe, Brazil, Asia and the USA. Renewable Energy and Carbon Dioxide: The use of waste wood to produce energy and the sale of CO2 emission rights are integral parts of our approach to the sustainable management of forests and the timber industry.

Landmark Carbon Offsetting Transactions "“ THE First CER Cancellations

Landmark Carbon Offsetting Transactions "“ THE First CER Cancellations

Precious Woods

Precious Woods

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